ReStore Capital has issued a timely report regarding the severe financial burden that both consumer-mandated transformation and the current crisis have imposed on retailers and their suppliers, and how innovative solutions can be leveraged by both parties to help ensure successful outcomes in this environment.
Transformational Change and Crisis Costs Weigh Heavily on Both Sides in Stressed and Distressed Retail/Supplier Relationships, co-authored by Ben Nortman and Ian Fredericks of ReStore Capital, explores many of the challenges facing retailers and their suppliers today. In particular, the authors discuss the impact on retailers of missing an entire selling season’s worth of revenue, yet needing the liquidity to simply keep the lights on in the short-term, as well as what that means for them and their suppliers as they look to replace unsold merchandise with new, seasonal inventory once the crisis has ended.
“When things do return to some level of normal, retail customers who wanted the ability to conduct their shopping in a seamless fashion across every channel even before this crisis, will in fact begin to demand it,” says Nortman. “Funding the capital expenditures associated with omnichannel retail, as well as accessing the liquidity needed to update retail inventories as shoppers return to stores, may require the use of strategies and expertise that many operators are not familiar with, but would be well advised to seek out under these circumstances.”
To obtain a copy of the report or schedule an interview with Ben Nortman or Ian Fredericks, contact Gary Epstein at [email protected].